Lego Group: Building Strategy Harvard Case Solution & Analysis


Lego Group is a Demark toy manufacturing company which was founded by the Kirk Kristiansen in I934.Lego Group has handed from father to the son and now it is owned by a grandchild  Kjeld Kirk Kristiansen. The Company offers the variety and quality of different products that influences the creative play to the children that learn from their own imaginations. The Company continuously involves in the creativity of the children through the learning and playing.

lego group, building strategy Case Study Solution

The Lego brick is the most significant creation of the company. The extensive development have experienced by the products of the Lego Group over the years from its beginning. But then again the basis of the products remains the traditional LEGO Brick. Lego. The company has extended its product offerings that not only includes the some new product, but also the computer games, website, movies and amusement parks. Lego Group in order to take full advantage of the business opportunities with the large chain stores and big box retailers, it worked thoroughly to deliver the joint forecasting, inventory management and marketing support.

The Lego Group has become the one of the largest toy manufacturer in the overall world. It has also become the global brand as the company has spread several operations of the business at international level. By the British Association for Toy Retailer, the company has acknowledged the distinction of being entitled “Toy of the Century”

Problem Statement

The main problem for the Lego Group was to identify the new market where it can expand its product line and business operation so that they can formulate the competitive strategy. In addition to this, the company wants to continue their financial success and maintain market dominance in the increasing toy industry in coming years.

SWOT Analysis

It is a strategic technique that is used to analyze internal and external factors involved in a Business. SWOT analyses quickly assess the current position of the company.


The Lego Group has a strong brand name all over the world. The company has recognized as one of the largest manufacturing players in the toy industry. One more strength of the company is its ability to innovate by making the use of technology without affecting the core standards of the company. The ability of the Lego Group to continuously make innovation in the products helps to attract more customers and increase the brand recognition.

The experience that the company have helped them to fulfill the requirements of their clients as the Lego Group has been in the business of toy manufacturing for many years. Secondly, the experience of the company also helps them easy identification and implementation of the changes in the product lines.

Diversification of the products is another strength of the company. The company has diversified its brand into TV, Video games and movies. Lego Group provides the playful Educational learning to the children by playing the game. Furthermore, these strengths help the company compete against other players in the toy industry.


The main weakness of the Lego Group is that the company’s product designs are easy to copy. As there are many companies in the industry that are offering the product and services identical to the Lego Group brand offerings. Therefore, make it problematic for the company to completely distinguish its product lines from those of the competitors offering.

Lego Group another weakness is that loss of identity because of the increase in the toy industry is increasing rapidly making it difficult for the company to differentiate itself from the other industry players. The products of the company are expensive, which may result in decrease market shares as there are several low price alternative available. Focus on the one product category is another weakness of the company.

The Lego group Building strategy Case Solution


The Lego Group should need to develop more programs and activities of branding in order to reach the new market target segments. However, this will help the company to expand its product line into more countries around the world.

Another opportunity for the company is that by using the latest technologies the company can enhance its learning. It also supports the company to increase the understanding and knowledge about the constant changes in the industry.

The Lego Group can also move its production operations and activities into the other place where it is cheaper to produce. Furthermore, it will also provide the company an opportunity to reduce its cost of production. Secondly, it will help the company to achieve the long term growth in the industry.

As the children are switched increasingly to the other types of entertainments greatly in the electronic sector. The company can organize the game competitions in the school in order to target more children toward their brand. It may reduce the number of switches and increase the retention ratio.............

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

The world-famous toys, LEGO Group (LEGO), collects the internal management team to create a strategic report on the various lines of LEGO products and business operations. In recent years, numerous threats have arisen in relation to the LEGO toy industry. Acquisition of Marvel Entertainment by the Walt Disney Company has created a serious impact on the securities licensing agreements toy. LEGO has also recently lost a long legal battle with the main competitor MEGA Brands, manufacturers MEGA Bloks, the European Union Court decision that removed the trademark LEGO bricks. In addition, the new competition is preparing to enter the market by Hasbro, the second largest toy manufacturer in the world, the company is launching a new line of rival product called Kre-O. It was important for the management team to determine where to expand Lego product lines and business operations, in order to develop a competitive strategy for the continuation of the past years, organizations have financial success and market dominance toy building. "Hide
by Darren Meister, Paul Bigus Source: Richard Ivey School of Business Foundation 12 pages. Publication Date: September 13, 2011. Prod. #: W11169-PDF-ENG

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